Job centre sign
Media playback is unsupported on your device
Video

Clegg: £1bn scheme will 'provide hope' to young jobless

Deputy Prime Minister Nick Clegg says a £1bn plan to provide subsidised work and training placements will "provide hope" to thousands of young people.

The three-year youth contract scheme will give employers subsidies worth £2,275 to take on 160,000 18-to 24-year-olds for six months.

Youth unemployment hit 1.02 million in the three months to September.

Labour has questioned how the scheme will be funded, following reports that working tax credits were to be squeezed.

Ben Geoghegan reports.

Go to next video: PMQs clash over youth unemployment